6 Biggest Reasons why we Love Investing in Property
We all work hard for money, but does our money work hard for us? Storing cash under the mattress may seem a good option, but remember that stored money will produce next to nothing. However, when it’s put into an investment, your dollars go to work for you. And if you really want to put it to work, make it sure that it’s earning the maximum amount with real estate.
Investing in real estate is not a rocket science, anyone can do it. Experts believe real estate investment is truly the best way to earn a passive income, save for retirement, and build a great investment portfolio. And we all know how great it is to invest in the Real Estate. We know that real estate investing is the best form of investment as you get to use other people’s money to pay off your initial investment. For example, you put the property for rent and earn monthly benefits while simultaneously increasing your monthly cash flow.
Along with being a great source to earn passive income, there’s a lot more why we love real estate investment:
1.) It’s as safe as a house
“Safe as a house” is the most popular comment we hear from the investment agents, but it truly stands true for the real estate investment. It’s because real estate investments are perfectly safe because of the paying character of house property as an investment.
The property market is constantly going towards the upper side with more and more people looking for their own homes and the limited earth space available. When you factor in the return and risk associated with buying property and other methods of investments like shares, the property is considered a far safer option.
2.) It’s a remarkable flexible market
Another great reason why we all love investing in property is that it’s a flexible market where you are most able to find an option for your budget. The only thing required is some research and you’ll see various offers from realtors and agents offering affordable entry points for real estate investment. If you buy smartly, you can even expect better or at least growth equivalent on these affordable assets than more expensive assets.
3.) It saves your taxes
Very few investments offer tax benefits, and investing in property is the most beneficial when looking for tax exemptions. The biggest two tax benefits you get with real estate investment include the mortgage interest deduction and the depreciation deduction. Together, both of these result in lower tax bills and also help offset your income stream. Make sure to work in close relationship with an expert tax professional who understands real estate and its benefits, while avoiding tax mistakes that can be costly.
4.) A great retirement plan
You can look for multiple insurance policies and retirement plans to ensure stable income once you stop working, but real estate is really going to be the best one among these all. If you are a terrible saver, then it’s a must to have some retirement plans for stress-free life ahead and a better future for your kids as well. Even after you retire in, say, 25 years, yield and value will continue to improve. You will always be grateful in the long run where you don’t successful future cash flow and wealth.
5.) Ability to leverage
Leverage is the most important reason for investing in property. You can borrow more when using the same property as security as compared to using a share portfolio. You are likely to get up to 95% loan to the value of the property while the percentage doesn’t go more than 50 or 60% of the value of a share portfolio. The borrowing power allows you to benefit from the capital growth of a larger asset.
6.) Ten years down the line, you’ll be happy you started today
So, let’s talk about the biggest fact about investing in property – it takes time. It’s not a guarantee that you’ll be rich tomorrow if you start investing in real estate today. But after 10 to 15 years, you will likely look back at 2017 and say, “I wish I did it back then” or simply you can say, “It’s been a great decision”. What comes to your mind depends on what you do today.
Originally Published at InvestmentRealEstate.biz
Investing in real estate is not a rocket science, anyone can do it. Experts believe real estate investment is truly the best way to earn a passive income, save for retirement, and build a great investment portfolio. And we all know how great it is to invest in the Real Estate. We know that real estate investing is the best form of investment as you get to use other people’s money to pay off your initial investment. For example, you put the property for rent and earn monthly benefits while simultaneously increasing your monthly cash flow.
Along with being a great source to earn passive income, there’s a lot more why we love real estate investment:
1.) It’s as safe as a house
“Safe as a house” is the most popular comment we hear from the investment agents, but it truly stands true for the real estate investment. It’s because real estate investments are perfectly safe because of the paying character of house property as an investment.
The property market is constantly going towards the upper side with more and more people looking for their own homes and the limited earth space available. When you factor in the return and risk associated with buying property and other methods of investments like shares, the property is considered a far safer option.
2.) It’s a remarkable flexible market
Another great reason why we all love investing in property is that it’s a flexible market where you are most able to find an option for your budget. The only thing required is some research and you’ll see various offers from realtors and agents offering affordable entry points for real estate investment. If you buy smartly, you can even expect better or at least growth equivalent on these affordable assets than more expensive assets.
3.) It saves your taxes
Very few investments offer tax benefits, and investing in property is the most beneficial when looking for tax exemptions. The biggest two tax benefits you get with real estate investment include the mortgage interest deduction and the depreciation deduction. Together, both of these result in lower tax bills and also help offset your income stream. Make sure to work in close relationship with an expert tax professional who understands real estate and its benefits, while avoiding tax mistakes that can be costly.
4.) A great retirement plan
You can look for multiple insurance policies and retirement plans to ensure stable income once you stop working, but real estate is really going to be the best one among these all. If you are a terrible saver, then it’s a must to have some retirement plans for stress-free life ahead and a better future for your kids as well. Even after you retire in, say, 25 years, yield and value will continue to improve. You will always be grateful in the long run where you don’t successful future cash flow and wealth.
5.) Ability to leverage
Leverage is the most important reason for investing in property. You can borrow more when using the same property as security as compared to using a share portfolio. You are likely to get up to 95% loan to the value of the property while the percentage doesn’t go more than 50 or 60% of the value of a share portfolio. The borrowing power allows you to benefit from the capital growth of a larger asset.
6.) Ten years down the line, you’ll be happy you started today
So, let’s talk about the biggest fact about investing in property – it takes time. It’s not a guarantee that you’ll be rich tomorrow if you start investing in real estate today. But after 10 to 15 years, you will likely look back at 2017 and say, “I wish I did it back then” or simply you can say, “It’s been a great decision”. What comes to your mind depends on what you do today.
Originally Published at InvestmentRealEstate.biz
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